Seetec calls for renewed focus on economic growth as EO sector reacts to Budget changes 

Seetec is urging government to use the Budget’s change to capital gains tax for founders disposing to Employee Ownership Trusts (EOTs) as a catalyst to put employee ownership more meaningfully at the centre of the UK’s growth and levelling-up agenda. 

While the reduction in tax relief has caused understandable concern across the EO sector, with fear the reduced incentive may slow adoption –it rightly remains favourable compared to other options available to founders and ensures that businesses transition to employee ownership for the right reasons. Seetec believes this moment offers a valuable opportunity to refocus national attention on what employee ownership really delivers for the UK economy: higher productivity, stronger local economies and long-term resilience. 

As a mature employee-owned business, Seetec is not directly affected by the change, but is encouraging policymakers and commentators to look beyond founder disposal mechanics and place greater emphasis on supporting the performance, stability and contribution of EO businesses for the long-term. 

At the recent EOA Conference in Telford, leaders from across the sector – representing a growing cross-section of UK industry – highlighted the real benefits EO businesses deliver: stronger cultures, deeper engagement, improved wellbeing and better productivity. Seetec emphasised that making the cultural transition, and sustaining it, is what creates lasting economic and social value, far beyond any tax treatment. 

What EO Is Not – and Why It Matters for the UK Economy 

Employee ownership is more than a method of business disposal. Crucially, it avoids dynamics that can weaken long-term economic resilience: 

• Shares are not sold out of the UK, helping keep profit, ownership and decision-making within the national economy. 
• Businesses are less exposed to sudden takeovers, protecting jobs, organisational identity and continuity for customers. 
• Decision-making is more likely to take a long-term view, reinvesting value into the business rather than extracting it for quick shareholder wins. 

These features mean EO businesses often deliver greater stability, stronger local roots and more consistent investment – all of which directly support the UK’s growth and levelling-up priorities. 

Employee Ownership Creates Better Workplaces 

EO builds better workplaces because it changes the foundation of how people relate to their jobs; rather than working for the business, they work as part of the business.   At Seetec we have seen how EO has transformed the workplace into a community of shared responsibility and shared reward.  We believe that better, fairer workplaces build stronger futures.  

Many EO organisations also adopt responsible employment standards, including paying the Real Living Wage and undertaking regular salary review, pursuing B Corp accreditation or similar, or voluntarily going beyond statutory requirements on wellbeing and workforce support – signing up to charters that hold employers to genuine equity standards such as Disability Confident or the Armed Forces Covenant.  

These socially conscious choices in turn can help to reduce avoidable pressures on public and health services. 

This more dignified, long-term approach to employment is not simply a cultural benefit – done right it actively supports higher productivity, lower absence, stronger organisational performance and healthier local economies. It is another way in which employee ownership underpins the UK’s growth and levelling-up ambitions. 

Policy Measures to Accelerate EO-Driven Growth 

Seetec is urging government to take practical steps to maintain momentum and unlock further value from the EO model: 

• Embed employee ownership in local and regional growth plans. 
• Introduce public procurement weighting for EO businesses that demonstrate social value and strong performance. 
• Maintain and, over time, enhance tax-free profit-share allowances for employee owners. 
• Explore a sliding scale of transaction incentives linked to the depth of employee ownership. 

Seetec’s purpose is to help people, businesses and communities achieve sustained and purposeful growth. The company continues to work with fellow EO organisations to grow social value, strengthen leadership capability and demonstrate the wider contribution EO can make to the UK economy. 

The rules may have changed, but the opportunity for the UK is unchanged. Employee ownership is a proven path to stronger businesses and stronger communities. Our focus will always be long-term impact rather ahead of extraction of short-term profit. Through this we will realise benefits for the economy – both regionally and nationally.

John Baumback, Seetec CEO